(a) Make sure that one is buying into a correct sector which is in uptrend as half of the time the bullishness in a stock stems from the strength in a sector.
(b) One must have a stop loss in place and must not lose more than 1-2% of total invested amount in a single trade.
(c) If a promoter has more than 40% of equity as his/her holding; than it speaks of the safety for retail investors.
(d) Another factor worth consideration is the holding of the FII and if FIIs have minimum 20 and maximum 25 percent than it is safe for a retail investor. However one point here to be considered is that more FII investment means higher volatility.
(e) One must buy in only those shares hich see atleast a volume of one lakh shares trading per day.
2. Thus make sure that one analyses the investment and only than make a foray for investment in the stock market and not to forget studying the book value approach defined in technical analysis stock market blog for the benefit of the readers.
